Facts

GOVERNOR SIGNS BILL

Gaming centers also known as "Internet cafes" are now illegal in Florida.

Gov. Rick Scott signed a bill Wednesday that bans up to 1,000 storefront operations across the state.

The new law took effect immediately after Scott signed the bill.

However, state officials say they will leave enforcement of the new law to local law-enforcement officials.

Florida legislators voted overwhelmingly last week to approve the ban. It was a quick response to a scandal that led to dozens of arrests and the lieutenant governor's resignation last month.

The storefront operations targeted by the bill currently allow customers to play sweepstakes games that simulate slot machines. But critics contend the new law will also lead to the closures of senior arcades.

--Associated Press

It could take months — even years — for the ban to unfold, depending on how aggressively the cafe owners fight in court.

An industry that has proliferated over a decade, growing to hundreds of locations in Florida and an estimated $1 billion in revenues, is not likely to disappear overnight, though Scott signed off on the ban on Wednesday.

Internet cafe owners fought a similar ban in North Carolina for two years, ultimately losing in the state Supreme Court last December. Cafe owners continued to operate during the legal battle. In fact, many ignored the ruling and are still open, according to media reports, a result of sporadic enforcement and cafes altering their gaming software to circumvent the law.

Florida's ban also is likely to withstand legal challenges, experts say. But whether the cafes shut down quickly or try to alter their operations and fight on for months or years is still unclear. The details could vary from county to county and city to city.

Much will depend on how aggressive local law enforcement officers are in enforcing the ban, and what legal and technological maneuvers the industry uses in response.

Sarasota County Sheriff Tom Knight and his Manatee counterpart, Sheriff Brad Steube said this week they plan to spend time getting familiar with the new law before ramping up enforcement. Both are likely to give cafe owners some warning before getting tough.

“We certainly don't have any intention of using SWAT teams to kick these doors in the first day it goes into effect,” Knight said. “That's not how we operate here.”

Deputies in both Sarasota and Manatee have raided the cafes in the past and confiscated machines, only to see their court cases fall apart because of ambiguities in state law.

Steube said he is happy to finally have some clarity in the law regulating these businesses, which use computer terminals to simulate slot machine gambling and pay out in cash. Similar operations offering gift cards also are banned.

Steube expects there to be some kind of “waiting period” in Manatee County when cafe owners will be informed about the new legislation and instructed on how to comply.

“I don't know what the time period might be; it might be 15 days or 30 days, and then we'll go do an inspection,” Steube said.

Doors still open

Sheriff's officials have counted more than two dozen Internet cafes in Manatee County. A similar number operate in Sarasota County, according to cafe owners.

Jason Honea owns or manages seven cafes in the region. He plans to keep his doors open until law enforcement comes knocking.

“I'm going to stay in operation until the sheriff tells me to shut down,” he said.

Honea criticized the ban, saying it will be bad for the economy. He has 30 employees. Each cafe pays up to $4,000 per month in rent and contracts with a variety of local companies for goods and services.

Michael Cutler rents a 3,000-square-foot building to Honea in Osprey. He is worried about losing a good tenant at a time when the commercial vacancy rate is nearly 20 percent in Sarasota and Manatee.

Cutler has commercial space he has been trying to rent since 2008. And Honea has been a stable tenant for five years.

“They pay the mortgage for me,” Cutler said. “They are my No. 1 tenant. It will be extremely painful.”

Honea said he is contemplating legal action to try to stay in operation.

“There are several people pursuing legal options and we are considering joining several of them,” he said.

Nova Southeastern law school professor Bob Jarvis, an expert on gambling law in Florida, said the cafes might be able to buy some time with legal maneuvers. But he doesn't expect them to have success.

“At the end of the day, it's very clear gambling is a prerogative of the state and the state can always ban gambling,” Jarvis said.

Cafe operators tried to fight the ban in North Carolina by arguing it violated free speech.

“The North Carolina Supreme Court said that's absurd,” Jarvis said. “It has nothing to do with speech at all, it has to do with illegal gambling.”

Yet hundreds of cafes continue to operate across North Carolina, according to a recent report in the News & Observer, a Raleigh newspaper. Crackdowns have been sporadic across the state, with no coordinated effort. And gaming companies have seen their software evolve to stay ahead of the law.

Jarvis said some Florida cafe operators undoubtedly will continue to test their luck and the patience of law enforcement. Some may avoid prosecution for a time, but he expects the industry to eventually fade away.

<p><em>TALLAHASSEE</em> - Don't expect a rash of police raids and empty storefronts after Gov. Rick Scott signs legislation outlawing simulated-slot-parlor “Internet cafes” — at least not right away. </p><p>It could take months — even years — for the ban to unfold, depending on how aggressively the cafe owners fight in court.</p><p>An industry that has proliferated over a decade, growing to hundreds of locations in Florida and an estimated $1 billion in revenues, is not likely to disappear overnight, though Scott signed off on the ban on Wednesday.</p><p>Internet cafe owners fought a similar ban in North Carolina for two years, ultimately losing in the state Supreme Court last December. Cafe owners continued to operate during the legal battle. In fact, many ignored the ruling and are still open, according to media reports, a result of sporadic enforcement and cafes altering their gaming software to circumvent the law.</p><p>Florida's ban also is likely to withstand legal challenges, experts say. But whether the cafes shut down quickly or try to alter their operations and fight on for months or years is still unclear. The details could vary from county to county and city to city.</p><p>Much will depend on how aggressive local law enforcement officers are in enforcing the ban, and what legal and technological maneuvers the industry uses in response.</p><p>Sarasota County Sheriff Tom Knight and his Manatee counterpart, Sheriff Brad Steube said this week they plan to spend time getting familiar with the new law before ramping up enforcement. Both are likely to give cafe owners some warning before getting tough.</p><p>“We certainly don't have any intention of using SWAT teams to kick these doors in the first day it goes into effect,” Knight said. “That's not how we operate here.”</p><p>Deputies in both Sarasota and Manatee have raided the cafes in the past and confiscated machines, only to see their court cases fall apart because of ambiguities in state law.</p><p>Steube said he is happy to finally have some clarity in the law regulating these businesses, which use computer terminals to simulate slot machine gambling and pay out in cash. Similar operations offering gift cards also are banned. </p><p>Steube expects there to be some kind of “waiting period” in Manatee County when cafe owners will be informed about the new legislation and instructed on how to comply. </p><p>“I don't know what the time period might be; it might be 15 days or 30 days, and then we'll go do an inspection,” Steube said.</p><p><b>Doors still open</b></p><p>Sheriff's officials have counted more than two dozen Internet cafes in Manatee County. A similar number operate in Sarasota County, according to cafe owners. </p><p>Jason Honea owns or manages seven cafes in the region. He plans to keep his doors open until law enforcement comes knocking.</p><p>“I'm going to stay in operation until the sheriff tells me to shut down,” he said.</p><p>Honea criticized the ban, saying it will be bad for the economy. He has 30 employees. Each cafe pays up to $4,000 per month in rent and contracts with a variety of local companies for goods and services.</p><p>“We're contributing to the economy, we're providing jobs, we're paying leases, we're buying food from Sam's Club,” Honea said.</p><p>Michael Cutler rents a 3,000-square-foot building to Honea in Osprey. He is worried about losing a good tenant at a time when the commercial vacancy rate is nearly 20 percent in Sarasota and Manatee. </p><p>Cutler has commercial space he has been trying to rent since 2008. And Honea has been a stable tenant for five years.</p><p>“They pay the mortgage for me,” Cutler said. “They are my No. 1 tenant. It will be extremely painful.”</p><p>Honea said he is contemplating legal action to try to stay in operation.</p><p>“There are several people pursuing legal options and we are considering joining several of them,” he said.</p><p>Nova Southeastern law school professor Bob Jarvis, an expert on gambling law in Florida, said the cafes might be able to buy some time with legal maneuvers. But he doesn't expect them to have success.</p><p>“At the end of the day, it's very clear gambling is a prerogative of the state and the state can always ban gambling,” Jarvis said.</p><p>Cafe operators tried to fight the ban in North Carolina by arguing it violated free speech.</p><p>“The North Carolina Supreme Court said that's absurd,” Jarvis said. “It has nothing to do with speech at all, it has to do with illegal gambling.”</p><p>Yet hundreds of cafes continue to operate across North Carolina, according to a recent report in the News & Observer, a Raleigh newspaper. Crackdowns have been sporadic across the state, with no coordinated effort. And gaming companies have seen their software evolve to stay ahead of the law.</p><p>Jarvis said some Florida cafe operators undoubtedly will continue to test their luck and the patience of law enforcement. Some may avoid prosecution for a time, but he expects the industry to eventually fade away.</p><p>“Their day has passed,” he said.</p><p><i>Staff writer Josh Salman contributed to this report.</i></p>